One of the biggest attractions of cryptocurrencies is over, they will no longer be anonymous at least in the European Union. And it is that, the advantage that has inclined many people in the use of cryptocurrencies has come to an end: anonymity.
While this feature will still apply in many other countries around the world, it will not in the EU. It is because the European Parliament has just approved a new rule, which establishes that all transactions in cryptocurrencies will be under the same regulations as conventional ones.
Without a doubt, this will mean a big change in the way many people use cryptocurrencies in the old continent. After all, anonymity has been one of the main reasons why people with large assets prefer this type of transaction and currency format. However, there is much more to reveal about this regulation and the reasons for its approval.
What is the new regulation for cryptocurrencies in the EU?
In short, the new regulations will require all cryptocurrency providers to identify all their transactions, regardless of the amount. The data that must be provided are the author of the transfer and the beneficiary; data that is not normally included in this type of transfer.
This new regulation comes as a reinforcement of the initial proposal, in which at least those transactions of less than 1,000 euros could be exempted. The change of heart came after it was felt that even in these smaller amounts, the risk was too high; since many people would find simple ways to circumvent the regulations, such as making many small transactions and thus maintaining their anonymity.
It is a mandatory regulation for all entities that handle cryptocurrencies. In case of non-compliance, a blacklist has been created; in which the names of said entities will be included, which will suffer from several disadvantages. One of the main reasons why this regulation was imposed is due to the widespread danger of money laundering and fraud that wraps around crypto assets.
Having a way to identify the participants of a cryptocurrency transaction will make it easier to deal with these financial problems; since the investigations will not require so much effort.
Global regulation of the cryptocurrency sector?
It is the Regulation of the Cryptoactive Market (MiCA), a system of regulation of the EU that is expected to be applied for the global regulation of the entire cryptocurrency sector. This only means that many more changes are on the way, and could change a sector that was completely decentralized, becoming controlled by public entities.
Lawmakers are currently debating which entity should be in charge of supervising the sector. They must be in charge of exercising and determining sanctions, authorization conditions and supervision of the entire sector.
The main options on the table are the European Securities Authority or other national authorities such as the National Securities Market Commission. On the other hand, given that many aspects remain to be defined, It is certain that these significant changes will not take place immediately. However, the ideal is that all entities and people with crypto assets prepare for the great changes that will be observed in the cryptocurrency sector in the EU.
It is expected to take a little less than two years for all regulations to be defined and begin to come into force in the European market, which will end the entire concept of crypto as we know it today.
